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Understanding Innovation Trajectories and Customer Overshoot PPT


This PPT slide, part of the 16-slide Disruptive Innovation Primer PowerPoint presentation, outlines 2 critical elements of disruptive innovation: the trajectory of improvement by incumbents and the pace at which sustaining innovation exceeds customer needs.

The first element emphasizes that in every market, established companies follow a distinct trajectory of innovation. This trajectory is marked by year-over-year improvements that are typically incremental. For instance, auto manufacturers enhance their products by improving aspects like engine horsepower or torque. Good management practices focus on creating superior products aimed at higher profit margins, targeting customers who are not yet satisfied with existing offerings.

The second element highlights a crucial insight: the speed of sustaining innovation often surpasses the ability of customers to fully utilize new features or improvements. This disconnect can lead to a situation where products designed for mainstream customers exceed the actual needs of those customers. The example given from the 1983 computer industry illustrates this point well. Early personal computer users, primarily typists, struggled to keep pace with the rapid advancements in processing power, such as the introduction of the Intel 286 chip.

These elements suggest that while innovation is essential, there is a risk of overshooting customer expectations and needs. Companies must be mindful of this gap to ensure that their innovations align with what customers can realistically adopt and benefit from. Understanding these dynamics is vital for any organization looking to navigate the complexities of market demands and technological advancements effectively.




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